With the recovery of the economy, the volume of foreign trade orders has shown a downward trend in 2023. Against this background, more and more companies have to go out to grab orders in order to gain more orders and market share. However, this competition has also led to a decline in product prices, and even some companies have fallen into vicious competition.
It’s really helpless to grab a charter flight order
The foreign trade economy has always been one of the troika supporting my country’s social and economic development. However, with changes in the global supply chain and changing market demand, the volume of foreign trade orders has begun to decline. Supply chain transfer is one of the main reasons for the current withdrawal of foreign trade orders. It feels like the foreign trade economy has reached its peak. Instead of increasing, foreign trade orders in 2023 will decrease. A textile person who specializes in foreign trade said: “It feels like there is no obvious improvement now, and it may not get better until the autumn.”
Now our textile market costs are rising, while the textile industry in countries such as Vietnam and India has lower costs. As the textile industry in these countries continues to develop, they already have sufficient production capacity and quality to meet international market demand. Therefore, many international buyers will give priority to suppliers in these countries instead of looking for partners in China. The main reason is that China’s foreign trade orders are no longer concentrated on low-end products as before. Therefore, the grand scene may not appear before.
A new round of involution begins
The foreign trade market cannot be delivered to your door by itself, so going abroad to grab orders has become a necessity in the current context. Foreign trade orders have decreased, and companies need to take active measures to win orders. Many companies go out to grab orders because a large number of supply chains have been transferred to India and Vietnam, and foreign trade orders have been withdrawn. This is the most helpless way. Grabbing orders is one of the most direct and practical ways for businesses. Companies grabbing orders can not only increase order volume, but also demonstrate the company’s strength and competitiveness.
In this fiercely competitive market, companies grab orders in order to better survive and develop. However, companies grabbing orders will also cause some problems. Business grabs for orders will lead to fierce competition among companies. This competition is mainly reflected in product prices. Companies lower product prices to win orders, thereby lowering the product price level in the entire market. This will directly affect the company’s profit margin and make it difficult for the company to maintain sustainable development.
Practicing internal strength also involves internal consumption
As foreign trade orders decline, factories must take measures to reduce costs, so many factories are not recruiting workers this year. Even if they are recruiting workers, they have raised recruitment requirements, which usually means raising recruitment requirements and lowering wages. For example, many factories have stopped hiring or reduced the number of workers this year. Some factories have even lowered the unit price of temporary workers, from 22 yuan per hour last year to 18 yuan per hour.
(Source: Internet)
This creates some difficulties for workers. They need to find jobs in more competitive markets and accept lower wages. This also makes it more difficult for the foreign trade economy to pick up. From a macro perspective, this will also affect economic growth and employment rates in the country as a whole. On the other hand, for factories, reducing labor and lowering wages may not only affect product quality and output, but even the most ordinary job in such an environment needs to be fought for by yourself. It feels like going back to the factory interviews more than ten years ago where you paid first for interviews, but this is the current situation.
To sum up, supply chain transfer is one of the main reasons for the current decline in foreign trade orders. Foreign trade companies still need to further improve product quality and technological content, open up new markets, and improve independent research and development and innovation capabilities in order to gain more opportunities in the fierce international market competition.
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